moody's says it has downgraded it because the economy is likely to stay sluggish the next few years. the news comes as an unwelcome surprise in london, especially for the finance minister who says the downgrade has made him more determined to cut the public debt. >> moody's lowered the rating by one notch. it is a blow to the government. some analysts say the austerity policies are hurting the economy at a time when it needs stimulus to generate growth. the finance minister sees things otherwise. >> this is a reminder of the debt problems britain faces and the clearest warning to those who think we can run away from dealing with those problems. >> britain has struggled to reduce its debt, a problem made worse by slow economic growth in recent years. bayless during the financial crisis have added to the problem. the slowlamed recovery and weak global economic activity and said low growth is likely to hamper government efforts to reduce debt. osborn said the government will stick by its policies. if we weaken our resolve, it would make the difficult situation much worse. we are clear t